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Tuesday, 8 May 2012
Page: 2824

Defence: Inventory Holdings

(Question No. 1629)

Senator Johnston asked Minister representing the Minister for Defence, upon notice, on 5 March 2012:

For the period 1 July to 31 December 2011:

(a) of the savings expected over the period 2010 to 2019, what specific savings have been made in the optimising of inventory holdings and the introduction of more efficient management techniques; and

(b) what one off savings been made.

Senator Chris Evans: The Minister for Defence has provided the following answer to the honourable senator's question:

(a)-(b) Strategic Reform Program (SRP) savings are tracked, reported and managed on a stream-by-stream basis, they are not broken up by sub-category of optimising inventory holdings, introducing more efficient management techniques, one-offs or other descriptors.

The Smart Sustainment stream, which includes inventory, is comprised of a range of specific initiatives across the spectrum of Defence and the Defence Materiel Organisation (DMO). These initiatives are at various stages of maturity and SRP governance closely monitors the progress of these initiatives against the planned schedule and achievement of agreed cost reductions.

The Department will publish the stream cost reductions achieved under SRP in the Defence Annual Report which is expected to be released in late 2012.